TUPE - when you're acquiring a business or involved in outsourcing
If you are buying a business, outsourcing, or bringing part of your own business back in-house, you'll already know that you have a legal obligation to inform and consult with the transferring employees (around what is happening, any changes that you are planning to make etc.) and that you will need to maintain all terms and conditions that the transferring employees currently enjoy. In addition to the complicated legal and financial hoops you'll go through, you'll also be thinking about:
- Will the transferring employees fit our culture? Will they work to our standards?
- Will the current team lose focus in the changeover?
- Will the combined team deliver the value you want?
- What will people do on Day One?
The legislation covering acquisitions (known as TUPE), is a tricky piece of employment law. It states that employees have the legal right to transfer with all existing terms and conditions, so as the new owner, you will literally step into the shoes of the old employer. That may be good news, or....
Get the transfer right and you will have an engaged workforce ready to deliver on Day One. Get it wrong and you may have half of your workforce working against you from Day One.